Delhi District Court
True Link Finance Ltd vs Vinay on 4 August, 2025
THE COURT OF MR. VAIBHAV PRATAP SINGH
CIVIL JUDGE, PATIALA HOUSE COURTS
NEW DELHI DISTRICT, DELHI
CNR No. DLND03-000120-2025
CS No. 74/2025
In the matter of:-
M/S TRUE LINK FINANCE LTD
Reg. Office: D-44, Mohan Singh Market
Sector-6, R. K. Puram
New Delhi-110022 . . .Plaintiff
Versus
1.VINAY S/o Sh. Bishan R/o H. No. C-42/79, Harijan Basti, Feroz Shah Kotla Road, New Delhi-110002.
Whats App No. 9818255564 Alternate Address:
Sh. Vinay S/o Sh. Bishan Designation: Helper Emp. Code: AG00007801 Duty At :- MCD Through the Managing Directors AG ENVIRO INFRA PROJECTS (P) LTD. Transfer Station Building, Near CNG Crematorium Bela Road, Vijay Ghat, New Delhi-110006. Whatsapp No. 9818255564
2. PINKY W/o. Sh. Bishan H.No.C-42/79, Harijan basti, Feroz Shah Kotla Road, New Delhi - 110002. . . .Defendants Date of Institution : 24.01.2025 Date of Reserving Judgment : 04.08.2025 Date of Judgment : 04.08.2025 Digitally signed by VAIBHAV VAIBHAV PRATAP PRATAP SINGH SINGH Date:
2025.08.04 16:40:06 +0530 CS SCJ 74/2025 M/s True Link Finance Ltd. Vs. Vinay & Anr. Page No. 1 of 8 SUIT FOR RECOVERY OF RS. 29,282/-
EX-PARTE JUDGMENT
1. The present suit is filed for recovery of Rs. 29,282/-
by the Plaintiff against the Defendants.
2. Brief facts as alleged by the Plaintiff are that the Plaintiff is a Limited NBFC duly incorporated under the Companies Act 1956, having its registered office at D-44, Mohan Singh Market, Sector-6, R. K. Puram, New Delhi -110022 and engaged in doing business of Hire Purchase/Loan and Finance. The present suit has been filed by Mr. Ginder Paul Verma, who is one of the Directors of Plaintiff Company and is authorized along with Mr. R. P. Mishra and Mr. Sunder Singh to sign and verify the pleadings and to institute the present case, as well as lead evidence.
3. On 30.01.2024, Defendant No. 1 approached the Plaintiff to obtain finance/loan to purchase One F & D Speaker chosen by them at Bhartiya Electronics, 3, Khanna Market, Lodhi Road, New Delhi-110003 of Rs. 17,900/- on the guarantee of Defendant No.2 and to hypothecate the same to the Plaintiff Company and also to repay the borrowed sum with interest @ 24% per annum in 12 installments of Rs. 2030/- each w.e.f. 01.03.2024. It was agreed that in case of any delayed installment payment, overdue interest @ 2.5% per month shall be payable by Digitally signed by VAIBHAV VAIBHAV PRATAP PRATAP SINGH SINGH Date:
2025.08.04 16:40:10 CS SCJ 74/2025 +0530 M/s True Link Finance Ltd. Vs. Vinay & Anr. Page No. 2 of 8 Defendants. The last installment was to be paid on 01.02.2025. The Plaintiff extended finance to the Defendant to purchase the same and the party executed Loan-cum-Hypothecation Agreement dated 30.01.2024 and undertook to pay to the Plaintiff Company liability of Loan Installments for 12 consecutive months of Rs. 2030/- each payable starting from 01.03.2024. The Defendants also executed Promissory Note dated 30.01.2024 as Collateral Security for amount of Rs.
24,360/- liable to be paid under the Loan-Cum-Hypothecation Agreement with interest. The Dealer was credited Rs. 17,900/- on 30.01.2024. However, the Defendants failed to pay the required installments and defaulted on making due payments. Therefore, Plaintiff sent Demand Notice dated 03.05.2024 to the Defendants. However, despite service of legal notice, Defendants failed to pay the outstanding dues. Hence, the Plaintiff filed the present suit.
4. Summons was served upon Defendant Nos.1 and 2 on 08.04.2025. However, Defendants failed to appear before the Court. Hence, Defendant No.1 and 2 were proceeded ex-parte on 27.05.2025.
5. Thereafter, matter was fixed for ex-parte evidence. AR of the plaintiff Mr. R. P. Mishra examined himself as PW-1, filed his evidence by way of affidavit Ex. PW-1/1 and relied upon the documents as under: Digitally signed by VAIBHAV VAIBHAV PRATAP PRATAP SINGH SINGH Date:
2025.08.04 16:40:13 +0530 CS SCJ 74/2025 M/s True Link Finance Ltd. Vs. Vinay & Anr. Page No. 3 of 8 Sl Documents Exhibit/ Mark No.
1. Copy of Certificate of Ex. PW1/2 Incorporation (At page no. 14)
2. Copy of RBI Registration Ex. PW1/3 (OSR) Certificate (At page no. 15)
3. Copy of Minutes Book dated Ex. PW1/4 (OSR) 20.10.22 (At page no. 20 )
4. Introductory Cum Ex. PW1/5 (At page Hypothecation Agreement no. 21) Proposal dated 30.01.2024
5. Loan Cum Hypothecation Ex. PW1/6 (At page Agreement dated 30.01.2024 no. 22 to 25)
6. Promissory Note 30.01.2024 Ex. PW1/7 (At page no. 26)
7. Legal Notice dated Ex. PW1/ 8 (At 03.05.2024 page no. 27 and 28)
8. Postal Receipts Ex. PW1/9 (At page no. 29)
9. Bill towards Legal Charges Ex. PW1/ 10 (At page no. 30)
10. Statement of Account Ex. PW1/11 (Colly) alongwith certificate 65 B of (At page no. 8 and Indian Evidence Act 9)
11. Copy of Memorandum of Mark A ( At page Association/ Form 32 no. 16 to 19)
12. Copy of Ledger Account of Mark B (At page M/s Bhartiya Electronics no. 32 and 33)
13. Copy of Aadhaar Card of Mark C (At page Defendant no.1. no. 34)
14. Copy of PAN Card of Mark D ( At page Defendant no. 1 no. 35) VAIBHAV PRATAP SINGH
15. Copy of office I-Card of Mark E (At page Digitally signed by VAIBHAV PRATAP SINGH Date: 2025.08.04 16:40:17 +0530 CS SCJ 74/2025 M/s True Link Finance Ltd. Vs. Vinay & Anr. Page No. 4 of 8 Defendant no. 1 no. 36)
16. Copy of Aadhar Card of Mark F (At page Defendant no. 2 no. 37)
6. No other witness was sought to be summoned or examined by the Plaintiff. Accordingly, ex-parte evidence was closed.
7. Final arguments were heard. The Learned Counsel for the Plaintiff has argued that the Plaintiff has by its evidence proved its case.
8. I have perused the record in light of the arguments advanced.
9. The present suit is well within the stipulated time of limitation. Further, since the contract was executed between the parties at the office of the Plaintiff which is at R. K. Puram, New Delhi, this Court has the territorial jurisdiction to decide the present case. Since the amount claimed is less than Rs.3,00,000/-, this Court also has the pecuniary jurisdiction to hear this case.
10. AR of the Plaintiff has tendered in his evidence as PW-1, documents i.e. Board Resolution, Loan-cum- Hypothecation Proposal form, Loan-cum-Hypothecation Agreement, Promissory Note and statement of account of Digitally signed by VAIBHAV VAIBHAV PRATAP defendant, clearly establishing the commercial relationship SINGH SINGH PRATAP Date:
2025.08.04 16:40:19 +0530 CS SCJ 74/2025 M/s True Link Finance Ltd. Vs. Vinay & Anr. Page No. 5 of 8 between the Plaintiff and the Defendant. However, neither the witness was cross-examined nor any other evidence was led on behalf of the Defendant who was proceeded ex-parte due to non- appearance. Hence, this Court has no reason to disbelieve the assertions of the Plaintiff, which leads to a necessary inference that Defendant has failed to make the payment owed to the Plaintiff along with the interest that accrued thereon.
11. Keeping in view the unrebutted testimony of PW-1 and documents relied upon, it can be said that the Plaintiff has duly established its case that Defendants have unlawfully withheld the amount due to the Plaintiff.
12. As per the case of the Plaintiff, on 30.01.2024, a principal amount of Rs. 17900/- was financed to the Defendant No.1 on the guarantee of Defendant No.2 which was due and payable by the Defendants along with a claim of interest @ 36% per annum, for a period of 12 months from 01.03.2024. The Plaintiff has thus claimed an amount of Rs. 29,282/-, which accounts for the principal sum of Rs. 17,900/-, interest charges at Rs. 6460/-, and an over due interest amount calculated at 2.5 % per month amounting to Rs. 3218/- till 10.01.2025 and legal notice charges and Speed Post of Rs. 1,704/-.
13. The Plaintiff cannot be allowed to charge such an exorbitant total effective rate of interest at 66% per annum in the name of overdue and interest charges from the Defendants, even if, there was a contract between the parties, especially when a VAIBHAV Digitally signed by VAIBHAV PRATAP PRATAP SINGH Date:
SINGH 2025.08.04
16:40:22
CS SCJ 74/2025 +0530
M/s True Link Finance Ltd. Vs. Vinay & Anr. Page No. 6 of 8
hefty contractual interest rate of 36% was already being charged, amounting to the total claimed interest at the rate of an exorbitant 66% per cent per annum.
14. The Plaintiff can be allowed to charge reasonable interest, whether in the form of penal interest or the normal interest and the charging of unnecessary interest and other charges are totally contrary to the public policy and the same is also against the well settled principles, as postulated in Section 23 of the Indian Contract Act, 1872.
15. Reliance in this regard can be placed on the judgment of the Hon'ble Division Bench of Hon'ble High Court of Delhi in the case of Pt. Munshi Ram & Associates (P) Ltd. vs DDA, 2010 SCC Online Del 2444 that higher rates of interest, which are against public policy, can be struck down by the Court by finding such rates of interest to be against the public policy. Any contract, which is against the public policy, is void, as per Section 23 of the Indian Contract Act, 1872.
16. The suit of the Plaintiff is thus decreed in favour of the Plaintiff and against the Defendants jointly and severally for an amount of Rs. 26,064/- with pendente lite rate of simple interest @ 9% per annum from the date of filing of the suit till the date of decree, and future interest @ 6% per annum from date of decree till the date of realization of the decretal amount.
Digitally
signed by
VAIBHAV
VAIBHAV PRATAP
PRATAP SINGH
SINGH Date:
2025.08.04
16:40:25
+0530
CS SCJ 74/2025
M/s True Link Finance Ltd. Vs. Vinay & Anr. Page No. 7 of 8
17. The cost of the suit is also awarded in favour of the Plaintiff and against the Defendant.
18. Decree sheet be prepared accordingly. File be consigned to Record Room after due compliance.
Pronounced by me in the Open Court on 04.08.2025. Digitally signed VAIBHAV by VAIBHAV PRATAP SINGH PRATAP Date:
SINGH 2025.08.04 16:40:28 +0530 (VAIBHAV PRATAP SINGH) Civil Judge, Patiala House Courts New Delhi District, Delhi CS SCJ 74/2025 M/s True Link Finance Ltd. Vs. Vinay & Anr. Page No. 8 of 8